Is SVB Financial Group (SIVB) A Good Stock To Buy?

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We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. It’s worth mentioning that Israel Englander’s Millennium Management dropped the largest position of the “upper crust” of funds watched by Insider Monkey, totaling about $13.7 million in stock. George Hall’s fund, Clinton Group, also sold off its stock, about $2.2 million worth.

Let’s check out hedge fund activity in other stocks similar to SVB Financial Group (NASDAQ:SIVB). We will take a look at Yamana Gold Inc. (USA) (NYSE:AUY), East West Bancorp, Inc. (NASDAQ:EWBC), Starwood Property Trust, Inc. (NYSE:STWD), and American Greetings Corporation (NYSE:AM). This group of stocks’ market caps are similar to SIVB’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AUY 20 224711 -4
EWBC 21 287737 -1
STWD 21 416130 0
AM 5 13251 2

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $235 million. That figure was $501 million in SIVB’s case. East West Bancorp, Inc. (NASDAQ:EWBC) is the most popular stock in this table. On the other hand American Greetings Corporation (NYSE:AM) is the least popular one with only 5 bullish hedge fund positions. SVB Financial Group (NASDAQ:SIVB) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard EWBC might be a better candidate to consider taking a long position in.

Disclosure: None

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